Tax revenue from Nevada’s marijuana industry beat expectations and generated more than $31 million between July and October, with a majority coming from Clark County, according to the Nevada Department of Taxation.
The department said Monday marijuana taxes generated more than 45 percent of the total projection for the fiscal year in just the first four months after hitting $31.72 million. About 80 percent of the revenue came from Clark County and 14 percent from Washoe County.
“We saw a strong upward revenue trend through the first year, and by comparison, the numbers for the first four months of the second fiscal year show a more level pattern thus far,” Bill Anderson, executive director of the Nevada Department of Taxation, said in a statement. “In all likelihood, we will see fairly steady revenue figures across the remaining eight months of the fiscal year, likely with some modest fluctuations up and down.”
Total sales of recreational marijuana totaled $41.71 million in October.
October marked the recreational marijuana industry’s 16th month of operations in Nevada. The wholesale marijuana tax, a 15 percent rate that is paid by medical and recreational marijuana cultivators, brought in $4.07 million in October, its biggest month yet. Revenue from this tax reached a total of $15.07 million this fiscal year.
Fees, penalties and assessments related to marijuana have generated $6.02 million this fiscal year. The revenue, with the money collected from the wholesale marijuana tax, funds the department’s costs to administer the marijuana program. Then $5 million of the collected revenue each fiscal year goes toward local governments. The remaining money is sent to the state’s Distributive School Account.
The retail marijuana tax, a 10 percent rate that is paid for by consumer purchases of recreational marijuana, generated $4.17 million in revenue in October and $16.65 million to date this fiscal year. The revenues from this tax go to the state’s rainy day fund.
Total statewide sales in Nevada dispensaries and retail stores — which includes medical and recreational marijuana and marijuana-related goods — hit $51.63 million in October and $197.95 million year-to-date.
The Department of Taxation projects a total of $69.4 million from marijuana tax revenue in fiscal year 2019, which ends June 30.
Source: https://stockdailydish.com/nevada-marijuana-tax-revenues-top-31m-from-july-to-october/
